Chapter 5 - Pecuniary Insurance

Question 1

what does pecuniary insurance mean?

Answer 1

intangibles - income, revenue

Question 2

what is the basic purpose of legal expenses?

Answer 2

provide indemnity for costs caused by the need to seek legal advice or pursue civil action

Question 3

what are civil actions?

Answer 3

actions not prosecuted in criminal courts

Question 4

what are the 2 standard legal expenses policies?

Answer 4

1. group legal benefit
2. commercial legal protection policies

Question 5

what do group legal benefit policies do?

Answer 5

operate on behalf of a group for example employees of a company and their immediate family members

Question 6

what are the 4 sections under a group legal benefit policy?

Answer 6

1. employment cover
2. personal cover
3. motor cover
4. conveyancing cover

Question 7

what does employment cover under a group policy cover?

Answer 7

defence of any claims against a member as a result of their employment

defence and compensation from actions under certain legislations - equality act 2010

costs of claiming compensation arising out of employment - discrimination and wrongful dismissal

Question 8

what does personal cover under a group policy cover?

Answer 8

covers the costs of pursuing personal rights or defending a personal act against the member

Question 9

what does motor cover include under a group policy?

Answer 9

the costs of defending a claim arising out of the ownership or use of a motor vehicle (not covered by an ordinary motor policy)

Question 10

what does conveyancing cover under a group policy include?

Answer 10

legal costs involved in buying and or selling their house up to a specified limit

Question 11

what is commercial legal protection?

Answer 11

policies designed to cover firms or companies as employers, property owners and traders where their business can expose them to litigation

Question 12

what legislations apply to customers and employees which highlight the importance of commercial legal protection?

Answer 12

1. employment relations act 1999
2. the national minimum wage act 1998
3. the data protection act 2018

Question 13

what are the 5 main sections on commercial legal protection policies?

Answer 13

1. employment cover
2. criminal prosecution defence cover
3. property disputes
4. motor cover
5. patents, registered designs, copyright and trademark cover

Question 14

what are optional extensions for commercial legal policies?

Answer 14

contract disputes and debt recovery

Question 15

what does contract disputes cover involve?

Answer 15

where insurers negotiate the policyholders rights in a contractual dispute

Question 16

what is covered by a debt recovery extension?

Answer 16

insurers will negotiate policyholders rights in recovery of money and interest due from the sale of goods or services above a minimum amount.

Question 17

what does commercial legal protection not cover?

Answer 17

any legal action for which indemnity costs can be recovered elsewhere for example under EL or PL policies.

Question 18

when does business interruption come into affect?

Answer 18

if the loss has impacted their ability to trade

Question 19

what are the 2 dimensions that make up BI?

Answer 19

the monetary value and the time the interruption will affect the business

Question 20

what is the time that the interruption will affect the business known as?

Answer 20

indemnity period

Question 21

how is turnover defined?

Answer 21

the total income arising from activities of business

Question 22

what are often referred to as ‘standing charges’?

Answer 22

net profit and fixed charges

Question 23

what is the term used for the addition of net profit and standing charges?

Answer 23

gross profit